PENN Entertainment Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.32%.
Did PENN Beat Earnings? Q4 2025 Results
PENN Entertainment delivered a notable earnings beat in Q4 2025, posting adjusted EPS of $0.07 against a consensus estimate of negative $0.07, a 195.50% positive surprise that underscored the company's accelerating operational turnaround. Revenue climbed 8.2% year-over-year to $1.81 billion, edging past the $1.76 billion analyst estimate, as the Interactive segment emerged as the quarter's defining force, with online sportsbook revenue surging 73% and iCasino growing 40% following the U.S. rebranding to theScore Bet. The segment's adjusted EBITDA loss narrowed sharply to $39.90 million from $109.80 million a year ago, with the unit achieving positive adjusted EBITDA in December alone, a milestone that has drawn renewed investor attention and contributed to a sharp post-earnings rise in the stock. Retail operations also held steady, delivering $456.40 million in segment adjusted EBITDAR at 32.3% margins despite roughly $7.00 million in weather-related headwinds. Looking ahead, management is targeting 20% segment adjusted EBITDAR growth in 2026, with the Interactive segment expected to reach break-even adjusted EBITDA and new properties in Joliet and Las Vegas adding incremental lift.
- Record Interactive segment gaming revenue driven by iCasino growth of 40% and online sportsbook growth of 73% year-over-year
- Successful rebranding of U.S. online sportsbook to theScore Bet with positive adjusted EBITDA in December
- Regional retail strength in Ohio, St. Louis, and L'Auberge Lake Charles
- Year-over-year growth in theoretical revenue across all rated worth and age segments
- Older demographics and VIP play contributing meaningfully to retail results
- New M Resort hotel tower capturing previously unmet demand
- Hollywood Casino Joliet delivering strong results from new and reactivated customers
“PENN's diversified retail portfolio delivered a solid quarter during which retail adjusted EBITDAR grew year-over-year, after adjusting for poor weather in December. In our Interactive segment, we successfully rebranded our U.S. online sportsbook to theScore Bet® and achieved positive adjusted EBITDA in December driven by iCasino momentum, disciplined cost management, and strong online sports betting hold rates.”
Penn Entertainment CEO, on the earnings call
Forward Guidance & Outlook
PENN expects 20% year-over-year segment adjusted EBITDAR growth in 2026. The retail segment is expected to benefit from continued momentum at the new M Resort hotel tower in Las Vegas and Hollywood Casino Joliet, plus anticipated late Q2 openings of the Hollywood Columbus hotel tower and landside relocation of Hollywood Casino Aurora. The Interactive segment is expected to achieve break-even adjusted EBITDA in 2026. The company has identified more than $10 million in annualized run-rate corporate overhead cost savings under a new organizational structure, mostly phasing in during H1 2026. Recurring maintenance capital expenditures are expected to return to near pre-COVID levels. Management expects to reduce lease-adjusted net leverage by more than 1 turn and traditional net leverage by more than 2 turns year-over-year, and to opportunistically return capital to shareholders. PENN expects to receive $225 million in funding from GLPI near the opening of the $360 million Hollywood Casino Aurora relocation at a 7.75% capitalization rate.
PENN YoY Financials
PENN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.